https://www.miningweekly.com
Aluminium|Copper|Environment|Export|Gas|Mining|Power|PROJECT|Solar|Steel|Waste|Water|Waste
Aluminium|Copper|Environment|Export|Gas|Mining|Power|PROJECT|Solar|Steel|Waste|Water|Waste
aluminium|copper|environment|export|gas|mining|power|project|solar|steel|waste-company|water|waste

Miners see value in EU focus on ESG but face red tape hurdles

16th October 2023

By: Reuters

  

Font size: - +

LONDON - Miners welcome the positive impact of Europe's focus on environment, social and governance issues (ESG) although the process can be riddled with red tape causing delays in achieving their green ambitions, company executives said.

Mining is crucial for the supply of critical raw materials including copper and aluminium needed for electric vehicles and renewable technologies such as solar power, but miners are also responsible for up to 7% of greenhouse-gas (GHG) global emissions as most in the sector race to hit net zero by 2050.

Compliance with ESG standards are increasingly important to keep commitments from institutional investors such as pension funds and insurance firms and for bank loans.

Christel Bories, CEO at miner Eramet told Reuters documentation proving the company's ESG credentials for bank loans ran into thousands of pages and that the whole process from start to finish could take up to 18 months.

"We have no problem supplying the evidence... but it does slow down the project," Bories said.

One initiative welcomed by metal producers is the EU's Carbon Border Adjustment Mechanism (CBAM). From October 1, EU firms have to report the GHG embedded during production of imported volumes of some goods including iron and steel, aluminium and electricity.

CO2 emission charges will not be imposed until 2026.

"We like it because it gives us a level playing field with other countries," said Boliden CEO Mikael Staffas, but he added there were issues.

"One example is if you import copper, turn it into tube and export it, you should get some credit back. This will be an administrative nightmare," Staffas said referring to the paperwork that would be required.

Investors want to see mining companies account for and report their emissions consistently and mine in a socially responsible way.

"There is a concern that there has been a proliferation (of standards) but let's not forget a lot of these standards have evolved because things in the sector have not been so good in the past," said Adam Matthews, chief responsible investment officer for the Church of England Pensions Board, which invests in mining companies.

Boliden's Staffas cited zero fatalities due to focus on ESG compared with roughly two per annum at some of the largest miners. "We are 15 years fatality free."

EU lawmakers are also pushing for far greater recycling of waste in a new law to ensure the bloc has raw materials such as lithium, nickel and cobalt required for its green transition, and traditional recycling companies and newcomers are investing in capacity to produce battery materials.

Eramet's joint venture with water company Suez to be located in France's Dunkirk region is one example.

The partners are aiming to build a plant to dismantle electric vehicle batteries, followed by a second unit to separate and refine metals for reuse with a low carbon hydrometallurgy process.

Edited by Reuters

Comments

Showroom

Yale Lifting Solutions
Yale Lifting Solutions

Yale Lifting Solutions is a leading supplier of lifting and material handling equipment in Southern Africa. Yale offers a wide range of quality...

VISIT SHOWROOM 
SMS group
SMS group

At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 19 April 2024
Magazine round up | 19 April 2024
19th April 2024
Resources Watch
Resources Watch
17th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.101 0.134s - 90pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: